SWISS LIFE (-) : Non material data changes

Research evidence excerpt

SWISS LIFE (-) : Non material data changes

Investment case, valuation and risks

Swiss Life (Underperform, Target Price CHF790)

Investment case

Swiss Life has been an exceptional investment over a long period of time. This has

been led by growth in the Fee result, led by the company's successful pivot from Life

insurer to Wealth Manager and Asset Manager. Whilst the outlook for the fee result

continues to look attractive, we expect that the growth in the cash remittance will

slow. Recently the company saw increases in remittances from the insurance

segment. However, as interest rate headwinds return, we expect cash remittances

from this segment to slow. This leaves the cashflow yields looking expensive, in our

view.

Valuation methodology

We value Swiss Life using our cash based valuation methodology. We forecast a view

of sustainable distributable cash generation and calculate a DCF valuation based on

this forecast.

Risks

To the upside:

Swiss Life has significant Real Estate exposure. As Real Estate risks reduce, there is a

potential major tailwind from rising Real Estate pricing and the potential resumption of

the Real Estate project pipeline. This can support non-recurring revenues. If this,

combined with growth to Asset Management flows, supports faster growth in the fee

result, then this could support higher cashflow than has currently been guided to.

To the downside:

Risks stem from a potential slowdown in fee result growth, led by lower growth in Asset

Management or IFA growth limiting the ability of the company to grow capital returns at

an attractive level. Interest rates are increasingly a challenge for statutory earnings.

However, valuation is the main downside risk in our view.

BNP Paribas Research Swiss Life 26 MAY 2026 page 3